The annual inflation rate in Canada decreased to 2 percent in June of 2019 from 2.4 percent in the previous month and in line with market expectations, as cost slowed for shelter and transportation while energy prices fell further. Excluding energy, the inflation dropped to 2.6 percent in June from 2.7 percent in May. Inflation Rate in Canada averaged 3.13 percent from 1915 until 2019, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921.

Inflation Rate in Canada is expected to be 2.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Canada to stand at 2.20 in 12 months time. In the long-term, the Canada Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.

Canada Inflation Rate
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Calendar GMT Actual Previous Consensus TEForecast
2019-04-17 12:30 PM Inflation Rate YoY Mar 1.9% 1.5% 1.9% 1.7%
2019-05-15 12:30 PM Inflation Rate YoY Apr 2% 1.9% 2% 2%
2019-06-19 12:30 PM Inflation Rate YoY May 2.4% 2% 2.1% 2.1%
2019-07-17 12:30 PM Inflation Rate YoY Jun 2% 2.4% 2% 2.2%
2019-08-21 12:30 PM Inflation Rate YoY Jul 2% 1.9%
2019-09-18 12:30 PM Inflation Rate YoY Aug 1.7%
2019-10-16 12:30 PM Inflation Rate YoY Sep 1.4%



Canada Inflation Rate Slows to 2% in June

The annual inflation rate in Canada decreased to 2 percent in June of 2019 from 2.4 percent in the previous month and in line with market expectations, as cost slowed for shelter and transportation and energy prices fell further. Excluding energy, the inflation dropped to 2.6 percent in June from 2.7 percent in May.

Year-on-year, cost slowed for shelter (2.5 percent from 2.7 percent in May); transportation (1.6 percent from 3.1 percent); clothing and footwear (1.6 percent from 3.1 percent) and alcoholic beverages and tobacco (1.4 percent from 2.1 percent). Meantime, inflation was steady for food (at 3.5 percent), with prices of fresh vegetables rising 17.3 percent, the most since January 2016 due to inclement weather in agricultural regions; and health and personal care (at 1.1 percent). 

Regarding special aggregates of the CPI, energy prices fell 4.1 percent from a year earlier in June, following a 0.1 percent decrease in May, as consumers paid less for gasoline (-9.2 percent) and fuel oil and other fuels (-4.1 percent). This was due in part to falling oil prices amid rising fuel inventories in the United States and the elimination of carbon pricing in Alberta at the end of May. Also, cost of goods went up 0.9 percent, after a 1.9 percent gain while services inflation rose to 2.8 percent from 2.7 percent in the prior month. 

Among the provinces, energy prices fell the most year over year in Alberta (-8.4 percent) in June.

On a monthly basis, consumer prices went down 0.2 percent, after a 0.4 percent gain in May and also matching market consensus.

The BoC's annual core inflation, which excludes volatile items, edged down to 2 percent from 2.1 percent in May and well below market forecasts of 2.6 percent. 


Statistics Canada | Agna Gabriel | agna.gabriel@tradingeconomics.com
7/17/2019 1:03:12 PM


News

Canada Inflation Rate Rises to 7-Month High in May
The annual inflation rate in Canada increased to 2.4 percent in May 2019 from 2 percent in the previous month and above market expectations of 2.1. It was the highest inflation rate since October, mainly boosted by cost of food and transportation
Published on 2019-06-19

Canada Inflation Rate at 4-Month High of 2%
The annual inflation rate in Canada edged up to 2 percent in April 2019 from 1.9 percent in the prior month, matching market expectations. It is the highest inflation rate since December, driven by prices of shelter and transportation.
Published on 2019-05-15

Canada Inflation Rate Hits 3-Month High of 1.9%
The annual inflation rate in Canada rose to 1.9 percent in March 2019 from 1.5 percent in the previous month and matching market expectations. It is the highest inflation rate since December. The transportation index drove headline inflation up, as gasoline prices declined less in March than in February.
Published on 2019-04-17

Canada Annual Inflation Rate Rises to 1.5% in February
The annual inflation rate in Canada rose to 1.5 percent in February 2019 from 1.4 percent in the previous month and above market expectations of 1.4 percent. Prices increased further mainly driven by food and shelter.
Published on 2019-03-22



Canada Prices Last Previous Highest Lowest Unit
Inflation Rate 2.00 2.40 21.60 -17.80 percent [+]
Inflation Rate Mom -0.20 0.40 2.60 -1.30 percent [+]
Consumer Price Index CPI 136.30 136.60 136.60 12.10 Index Points [+]
Core Consumer Prices 133.90 133.70 133.90 61.70 Index Points [+]
Core Inflation Rate 2.00 2.10 5.40 0.00 percent [+]
GDP Deflator 108.90 107.70 108.90 11.80 Index Points [+]
Producer Prices 119.60 119.50 119.70 15.60 Index Points [+]
Producer Prices Change 0.60 1.80 21.10 -7.20 percent [+]
Export Prices 113.90 112.40 113.90 59.50 Index Points [+]
Import Prices 122.20 122.00 8964.00 73.00 Index Points [+]
Food Inflation 3.50 3.50 20.18 -7.14 percent [+]
CPI Housing Utilities 144.00 144.20 144.20 39.10 Index Points [+]
CPI Transportation 142.70 144.00 144.00 10.90 Index Points [+]


Canada Inflation Rate

In Canada, the most important categories in the CPI basket are Shelter (27.5 percent of the total weight) and Transportation (19.3 percent). Food accounts for 16.1 percent; Household Operations, Furnishings and Equipment for 11.8 percent; Recreation, Education and Reading for 11.8 percent; Clothing and Footwear for 5.7 percent; Health and Personal Care for 5 percent; Alcoholic Beverages and Tobacco Products for the remaining 3 percent. The CPI basket is reviewed every four years on the basis of household surveys. The current weights are based on spending patterns in 2009. This page provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Inflation Rate - actual data, historical chart and calendar of releases - was last updated on July of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
2.00 2.40 21.60 -17.80 1915 - 2019 percent Monthly
2002=100




Country Last Previous
Argentina 55.80 Jun/19
Australia 1.30 Mar/19
Brazil 3.37 Jun/19
Canada 2.00 Jun/19
China 2.70 Jun/19
Euro Area 1.30 Jun/19
France 1.20 Jun/19
Germany 1.60 Jun/19
India 3.18 Jun/19
Indonesia 3.28 Jun/19
Italy 0.70 Jun/19
Japan 0.70 Jun/19
Mexico 3.95 Jun/19
Netherlands 2.70 Jun/19
Russia 4.70 Jun/19
Saudi Arabia -1.50 May/19
Singapore 0.90 May/19
South Africa 4.50 May/19
South Korea 0.70 Jun/19
Spain 0.40 Jun/19
Switzerland 0.60 Jun/19
Turkey 15.72 Jun/19
United Kingdom 2.00 Jun/19
United States 1.60 Jun/19


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